Is GDP the North Star?
I was debating with friends about whether GDP should be the North Star for a country. What is GDP and why it matters GDP measures the total exchange of goods and services in a country, capturing the scale of economic activity and trade. It’s an effective shorthand for material prosperity. Historically, countries with high GDPs tend to offer better living standards, infrastructure, and public services. When economies grow, people generally gain access to better healthcare, education, and opportunities. At a personal level, I align with Kanye’s philosophy: “Having money isn’t everything, but not having it is.” This captures the duality of wealth: it’s foundational for security and opportunity but insufficient as the ultimate life goal. Without it, basic survival becomes a struggle. But once those needs are met, the returns diminish, and other values, like social connections, health, or fulfillment, emerge. The Limits of GDP GDP has significant blind spots. It doesn’t measure inequality, ...